Grandparents are not considered part of 'Family' for settlement deed duty under Indian Stamp Act.

ORDER :

D.BHARATHA CHAKRAVARTHY, J.

A.The Reference:

The Indian Stamp Act, 1899 was enacted to consolidate and amend the law relating to stamps. It is periodically amended by the Central Government. State amendments are also brought in with due consent of the President. Section 3 of the , charges the duty in respect of every instrument mentioned in Schedule-I and the amount is indicated, subject to the conditions and exemptions mentioned therein. Article 58 which deals with Settlements was subsituted by Tamilnadu Act 42 of 1981 and was also subject to further amendments by the State and as on date it reads as under :

“58. SETTLEMENT—(a) instrument of (including a deed of dower)-

(i) if the instrument of settlement is in favour of a member or members of a family.

[One rupee for every Rs.100 of part thereof of the market value of the property which is under [settlement]]

Provided, that where an agreement to settle is stamped with the stamp required for an instrument of settlement and an instrument of settlement in pursuance of such agreement is subsequently executed, the duty on such instrument shall not exceed [twenty rupees].

Explanation.-

For the purpose of this Article, the word “family” means father, mother, husband, wife, son, daughter,[grandchild, brother or sister]. In the case of any one whose personal law permits adoption, “father” shall include an adoptive father “mother” an adoptive Mother, “son” an adopted son and “daughter” an adopted daughter.

(ii)in any other case-

(A) of immovable property situated within the Chennai Metroploitan Planning Area and the Urban Agglomeration of Madurai, Coimbatore, Salem and Tiruchirapalli and City of Tirunelveli.

[Thirteen rupees for every Rs.100/- or part thereof of the market value of the property which is the subject matter of settlement.]

(B) of immovable Property situated in other areas;

[Twelve rupees for every Rs.100 of part thereof of the market value of the property which is the subject matter of settlement.

(C) of any other property.- Seven rupees for every Rs.100 or part thereof of the market value of the property which is the subject matter of settlement.

Exemption.- Deed of dower execute on the occasion of a marriage between Muhammadans.

(b) Revocation of- The same duty as Bottomry Bond (No.16) for a sum equal to the amount or valur of the property concerned as set forth in the instrument of Revocation but not exceeding [One thousand rupees.”

(emphasis supplied)

1.1. Thus, by the explanation, a grandchild is included within the definition of the term ‘Family’. Accordingly, the settlements were charged lesser amount of duty under the above provision in Article 58 (a)(i). However, when settlements take place from the grandchildren to the grandparents and when the settlement deeds are presented, the benefit under Article 58 (a) (i) is not allowed, and higher duty as above is in Article 58 (a) (ii) is charged. The balance of stamp duty and the registration charges payable are demanded from the executants/claimants of those documents. Under those circumstances, after filing statutory appeals, by way of civil revision and as well as by way of writ petitions, several matters came before this Court and were decided. However, over a period of time, conflicting views were taken.

1.2. A Division Bench of this Court in Inspector General of Registration and Chief Revenue Controlling Authority and another Vs. R.Santhosh and another , (2017) SCC OnLine Mad 32632 by interpretation of the above explanation under Article 58 for the term ‘Family’, held that a grandmother and grandfather should also be considered to fall within the meaning of the term, and the instrument should be charged accordingly. Judgments